- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of
The Securities Exchanges Act of 1934
For the quarter ended Commission File No. 0-22058
September 30, 1997
MERCHANTS NEW YORK BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3650812
(State or other jurisdiction of (I.R.S. employer identification no.)
incorporation or organization)
275 Madison Avenue, New York, N.Y. 10016-0001
(Address or principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212)973-6600
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _X_ No ___
As of September 30, 1997, there were 4,835,404 shares of common stock
outstanding, the Registrant's only class of stock.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
Consolidated Balance Sheets
Part I Item 1
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
-------------- --------------
<S> <C> <C>
Assets
Cash and due from banks $ 49,707,477 57,840,059
Federal funds sold 11,000,000 26,000,000
Securities available for sale, at market value 568,149,298 561,600,523
Investment securities 193,200,434 166,908,260
Loans, net of unearned discounts 376,068,138 297,080,725
Less allowance for loan losses 6,872,295 5,616,971
-------------- --------------
Total loans, net 369,195,843 291,463,754
Bank premises and equipment 7,114,460 6,767,568
Customers' liability on acceptances 15,065,900 13,806,691
Intangible asset 600,000 685,714
Other assets 13,774,166 12,726,132
-------------- --------------
Total Assets $1,227,807,578 1,137,798,701
-------------- --------------
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Demand $ 217,278,372 253,695,143
NOW 40,546,274 44,431,219
Savings 24,153,423 24,763,303
Money market 141,767,141 146,168,644
Time 417,932,522 406,635,101
-------------- --------------
Total deposits 841,677,732 875,693,410
Securities sold under repurchase agreements 210,000,000 120,000,000
Other short-term borrowings 38,535,730 7,199,039
Acceptances outstanding 15,065,900 13,806,691
Other liabilities 16,789,360 17,563,929
-------------- --------------
Total Liabilities 1,122,068,722 1,034,263,069
Stockholders' Equity
Capital stock $.001 par value per share;
10,000,000 authorized shares;
4,994,666 and 4,987,561 issued & outstanding
in 1997 and 1996, respectively 4,995 4,988
Surplus 23,771,247 23,749,629
Undivided profits 79,138,011 72,915,689
Less Treasury stock at cost (159,262 and 17,890 shares
in 1997 and 1996, respectively) 6,681,120 552,910
Net unrealized appreciation on investments available
for sale, net of tax effect 9,505,723 7,418,236
Commitments and contingent liabilities
-------------- --------------
Total Stockholders' Equity 105,738,856 103,535,632
-------------- --------------
Total Liabilities and Stockholders' Equity $1,227,807,578 1,137,798,701
-------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
1
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
Consolidated Statements of Income
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest and Dividend Income
Interest on loans $ 8,039,203 $ 6,582,373 $21,279,227 $18,027,182
Interest and dividends on investment securities:
Taxable 12,533,853 11,323,030 36,951,380 31,989,501
Non-taxable 1,068,431 1,075,640 3,244,379 3,259,471
Interest on federal funds 45,924 5,861 206,444 167,188
----------- ----------- ----------- -----------
Total interest and dividend income $21,687,411 $18,986,904 $61,681,430 $53,443,342
----------- ----------- ----------- -----------
Interest Expense
Interest on deposits 7,303,493 6,530,099 21,781,301 19,326,797
Interest on federal funds purchased 176,178 180,399 508,048 408,394
Interest on securities sold under repurchase agreements 3,080,403 2,082,319 6,773,037 4,502,713
Interest on other short-term borrowings 246,480 106,588 519,605 159,533
----------- ----------- ----------- -----------
Total interest expense $10,806,554 $ 8,899,405 $29,581,991 $24,397,437
----------- ----------- ----------- -----------
Net Interest Income $10,880,857 $10,087,499 $32,099,439 $29,045,905
Provision for possible loan losses 500,000 400,000 1,000,000 600,000
----------- ----------- ----------- -----------
Net int. inc. after provision for loan losses $10,380,857 $ 9,687,499 $31,099,439 $28,445,905
----------- ----------- ----------- -----------
Non Interest Income
Service fee and other charges 321,856 348,470 970,782 990,516
International department services 728,703 628,840 2,030,908 1,807,449
Fee income 326,623 304,241 840,321 796,964
Other income 0 7,551 0 73,863
Investment sales - net gains 0 8,312 21,901 372,396
----------- ----------- ----------- -----------
Total non interest income $ 1,377,182 $ 1,297,414 $ 3,863,912 $ 4,041,188
----------- ----------- ----------- -----------
Non Interest Expenses
Salaries and employee benefits 3,008,688 2,913,966 9,310,988 9,136,589
Net occupancy 643,687 641,433 1,949,684 1,900,264
Equipment 201,997 177,430 573,974 506,777
Other expenses 1,659,731 1,356,013 4,925,518 4,220,114
----------- ----------- ----------- -----------
Total non interest expenses $ 5,514,103 $ 5,088,842 $16,760,164 $15,763,744
----------- ----------- ----------- -----------
Income before income taxes $ 6,243,936 $ 5,896,071 $18,203,187 $16,723,349
Provision for income taxes 1,890,731 2,117,829 6,583,111 6,631,327
----------- ----------- ----------- -----------
Net Income $ 4,353,205 $ 3,778,242 $11,620,076 $10,092,022
----------- ----------- ----------- -----------
Average number of common shares outstanding 4,951,921 5,026,981 4,991,074 5,031,895
----------- ----------- ----------- -----------
Net income per average share $ 0.88 $ 0.75 $ 2.33 $ 2.00
----------- ----------- ----------- -----------
Dividends per share of common stock $ 0.40 $ 0.35 $ 1.10 $ 0.95
----------- ----------- ----------- -----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
2
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
Consolidated Statements of Changes in Stockholders' Equity
Periods ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
------------- -------------
<S> <C> <C>
Capital stock:
Balance at beginning of year $ 4,988 4,982
Shares issued through exercise of Employee Stock Options:
7,105 shares and 3,198 shares in 1997 and 1996, respectively 7 2
------------- -------------
Balance at end of period 4,995 4,984
============= =============
Surplus:
Balance at beginning of year 23,749,629 23,626,181
Excess over par value on shares issued through the exercise
of Employee Stock Option 385,739 63,708
Common stock issued from treasury stock for Stock Options:
11,953 shares in 1997 (364,121) 0
------------- -------------
Balance at end of period 23,771,247 23,689,889
============= =============
Undivided profits:
Balance at beginning of year 72,915,689 66,719,678
Net income 11,620,076 10,092,022
Cash dividends paid (5,397,754) (4,734,548)
------------- -------------
Balance at end of period 79,138,011 72,077,152
============= =============
Treasury stock:
Balance at beginning of year (552,910) 0
Repurchase of 159,262 shares of common stock (6,492,331) 0
Common stock issued from treasury stock for Stock Options:
11,953 shares in 1997 364,121 0
------------- -------------
Balance at end of period (6,681,120) 0
============= =============
Net unrealized appreciation on securities
available for sale, net of tax effect
Balance at beginning of year 7,418,236 9,803,762
Changes during the period, net of tax 2,087,487 (4,080,278)
------------- -------------
Balance at end of period 9,505,723 5,723,484
============= =============
Stockholders' equity
Balance at beginning of year 103,535,632 100,154,603
Changes during the period, net 2,203,224 1,340,906
------------- -------------
Ending balance $ 105,738,856 $ 101,495,509
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
3
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 11,620,076 $ 10,092,022
------------- -------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 751,092 689,735
Amortization of premium, net of discounts 3,874,614 3,492,377
Provision for loan losses 1,000,000 600,000
Gains on sales (21,901) (372,396)
Discounted rental on leases (39,501) (31,077)
Increase in unearned discounts 8,538 26,247
Increase (decrease) in taxes payable 158,173 (299,929)
Increase in interest receivable (614,014) (752,043)
Increase (decrease) in interest payable 64,572 (1,155,175)
Decrease in accrued expenses (422,158) (445,472)
Increase in other assets (434,019) (270,894)
Increase in other liabilities 227,136 275,731
------------- -------------
Net cash provided by operating activities 16,172,608 11,849,126
------------- -------------
Cash flows from investing activities:
Net decrease in federal funds sold 15,000,000 47,000,000
Proceeds from redemptions of securities available for sale 90,656,410 96,773,877
Proceeds from sales of securities available for sale 10,175,000 60,909,980
Purchase of securities available for sale (142,895,228) (132,553,031)
Proceeds from redemptions of investment securities 25,194,192 16,487,306
Purchase of investment securities (18,399,115) (121,907,310)
Net increase in customer loans (78,740,626) (54,277,927)
Net increase in bank premises and equipment (1,012,271) (905,661)
------------- -------------
Net cash used by investing activities (100,021,638) (88,472,766)
------------- -------------
Cash flows from financing activities:
Net decrease in demand deposits, NOW, savings
and money market accounts (45,313,099) (16,428,679)
Net increase in certificates of deposits 11,297,421 27,450,903
Net increase in securities sold under repurchase agreements 90,000,000 44,935,000
Net increase in other short-term borrowings 31,236,465 20,000,000
Proceeds from issuance of common stock 21,625 63,710
Purchase of treasury stock (6,128,210) 0
Dividends paid (5,397,754) (4,734,548)
------------- -------------
Net cash provided by financing activities 75,716,448 71,286,386
------------- -------------
Net decrease in cash and cash equivalents (8,132,582) (5,337,254)
Cash and cash equivalents at beginning of the period 57,840,059 50,919,219
============= =============
Cash and cash equivalents at end of the period $ 49,707,477 $ 45,581,965
============= =============
Supplemental disclosure of cash flow information:
Interest paid $ 29,517,418 $ 25,552,612
Taxes paid 6,424,938 6,931,257
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
4
<PAGE>
MERCHANTS NEW YORK BANCORP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements include the accounts of Merchants New
York Bancorp (Bancorp), its wholly owned subsidiary, The Merchants Bank of New
York (the Bank) and as of April, 1997, the Bank's subsidiary, Merchants Capital
Corp. All material intercompany accounts and transactions have been eliminated
in consolidation. The consolidated financial statements as of and for the
interim periods of September 30, 1997 and 1996 are unaudited. However, in
management's opinion, all adjustments, which consist of normal accruals
necessary for the fair presentation of such periods, have been made. Certain
reclassifications have been made to the 1996 financial statements to conform to
current presentation. The interim financial statements should be read in
conjunction with Bancorp's Annual Report on Form 10-K, for the year ended
December 31, 1996.
2. In March 1997, the Financial Accounting Standards Board (FASB) issued SFAS
No. 128, "Earnings Per Share." This statement specifies the computation,
presentation and disclosure requirements for earnings per share (EPS). The
objectives are to simplify the computation of EPS and to make the United States
EPS standard more compatible with that of other countries. It will be effective
for financial statements issued after December 15, 1997. Earlier application is
not permitted, but restatement of prior periods earnings per share data is
required. For the quarter ending September 30, 1997, the EPS was $.90 per share,
using the calculation as required by SFAS No. 128, as compared to $.88 per share
using the current method, as proscribed by APB Opinion 15. Management does not
anticipate any material change at the time of implementation.
5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Part I - Item 2
Three months ended September 30, 1997 compared with Three months ended
September 30, 1996
Interest on investments increased by $1.2 million to $13.6 million for the third
quarter of 1997, as compared to $12.4 million in 1996. Virtually all of the
increase was contributed by higher volume. The major factors contributing to the
increase were the reinvesting of funds from paydowns on mortgage backed
securities and maturities as well as the collateralized short term borrowings,
which produced higher portfolio balances. The investment portfolio average for
the quarter increased $67.2 million to $764.7 million in 1997, from $697.5
million in 1996.
Loan interest income increased in the third quarter of 1997 by $1.5 million to
$8 million from $6.5 million for the same period in 1996. $1.3 million is
attributable to higher loan volume and about $200,000 is from higher rates. The
prime rate increased to 8.50% in the third quarter of 1997, from 8.25% for the
same time period in 1996. Average quarterly loan outstandings increased $58.2
million to $346.9 million in 1997 from $288.7 million in 1996.
Interest expense on interest bearing deposits increased to $7.3 million for the
third quarter of 1997, with $6.5 million in the same period in 1996. Increases
in deposits caused the upswing in expense of a little over $500,000, with almost
$300,000, due to higher rates. Average interest bearing deposits increased by
$39.9 million to $614.5 million in 1997, from $574.6 million in 1996.
Interest expense on securities sold under repurchase agreements (repos)
increased by $1 million as of the quarter ending September 30, 1997 to $3
million as compared to $2 million for the same period in 1996. $900,000 of the
increase is attributable to a greater volume, with $100,000 from higher rates.
There was an increase in average repos to $206.7 million in 1997 from $148.7
million in 1996, with these funds being used to support the larger investment
and loan portfolios. Other short term borrowings interest cost(U. S. Treasury
Demand notes and Federal Home Loan Bank advances) increased by $140,000 to
$246,000 in 1997, with an average balance increase of $9.2 million to $17.3
million.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
Three months ended September 30, 1997 compared with Three months ended
September 30, 1996(Continued)
Non-interest income increased by just under $100,000 from $1.3 million at
September 30, 1996 to $1.4 million at September 30, 1997. This was primarily
attributable to increases in the International Department fees in 1997 versus
1996.
Non-interest expense increased to $5.5 million or $425,000 more than the 1996
results of $5.1 million. This stemmed principally from a $27,000 increase in
occupancy and equipment costs of moving a lending division to our Madison Avenue
location, an increase of $94,000 in salaries and benefits due mainly to pension
costs, a $178,000 increase in professional fees for various services, plus
$26,000 in higher FDIC fees for the Saving and Loan bailout program.
Income tax expense decreased by $227,000 for the third quarter 1997 versus 1996,
as the result of tax planning, which became effective in the second quarter of
1997.
An addition of $500,000 was made to the provision for loan losses for the third
quarter for 1997, versus $400,000 for the same period in 1996.
Quarter ending
--------------
ALLOWANCE FOR LOAN LOSSES 9/30/97 9/30/96
- -------------------------------------------------------------------------------
(In thousands)
Balance at beginning of quarter ..................... $ 6,332 6,483
Provision for loan losses ........................... 500 400
Charge offs ......................................... 0 (1,073)
Recoveries
Commercial ........................................ 40 205
Installment ....................................... 0 1
----------------------
Total ............................................... $ 6,872 6,016
======================
Our loan loss provision is based on maintaining a loan loss reserve to cover all
non-accrual and higher risk loans. At September 30, 1997, our level of reserves
follows industry standards, as demonstrated in other commercial banks, with the
provision rising and falling to reflect the status of our loan portfolio risk.
The Bank's allowances for loan losses at September 30, 1997 and 1996 was 2% of
average loans. In addition to non-accrual loans, we consider loans classified by
management as having higher than normal credit risk but where a loss is not
currently anticipated.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
Nine months ended September 30, 1997 compared with nine months ended
September 30, 1996
Interest on investments increased by $5 million to $40.2 million for the period
ending September 30, 1997, as compared to $35.2 million in the same period in
1996. Substantially all of the increase was contributed by higher volume. The
rise is the result of an expanded program to generate greater profitability from
investments. The investment portfolio average increased $93.6 million to $763
million in 1997, from $669.4 million in 1996.
Loan interest income in 1997 increased by $3.3 million to $21.3 million from $18
million in 1996, with substantially all of the change due to increased volume.
The prime rate increased to 8.42% in 1997, from an average of 8.28% in 1996.
Average loan outstandings increased to $310.9 million in 1997 from $266.1
million in 1996.
Interest expense on interest bearing deposits increased by $2.5 million, to
$21.8 million as compared to $19.3 million, for the nine months of 1997 versus
1996. $2.1 million of the expense is attributable to increased volume of
deposits, centered primarily on certificates of deposit. The rate increase was
almost $400,000. Average interest bearing deposits increased by $57.9 million to
$626.5 million in 1997, from $568.6 million in 1996.
Interest expense on securities sold under repurchase agreements (repos)
increased by $2.3 million as of the quarter ending September 30, 1997 to $6.8
million as compared to $4.5 million for the same period in 1996. $2.1 million of
the increase is attributable to a greater volume, with $200,000 from higher
rates. There was an increase in average repos to $157.2 million in 1997 from
$109.1 million in 1996, with these funds being used to support the larger
investment and loan portfolios. Other short term borrowings interest cost (U. S.
Treasury Demand notes and Federal Home Loan Bank advances) increased by $360,000
to $520,000 in 1997, with an average balance increase of $8.8 million to $12.8
million. The increase of $100,000 in interest expense for Federal funds
purchased is attributable to higher short term borrowings to equalize cash
flows. Average Federal funds purchased (which are generally overnight funds)
increased by $2.1 million, to $11.9 million from $9.8 million last year.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
Nine months ended September 30, 1997 compared with nine months ended
September 30, 1996 (continued)
Non-interest income was $3.9 million versus $4 million in 1996, as a result of
$350,000 less in gains on sales of securities, which were sold in 1996, so as to
reinvest the funds at higher interest rates, offset by an increase of $223,000
in International Department fees.
Noninterest expense was increased by almost $1 million to $16.8 million from
$15.8 million for 1997 and 1996, respectively. This partially originated from
$405,000 in professional fees, $157,000 in higher pension contributions, $76,000
in higher FDIC fees for the Saving and Loan bailout program and $116,000 in
increased occupancy and equipment cost.
Income taxes remained at $6.6 million for the nine months ended September 30,
1997 and 1996, due to tax planning, although we have increased profitability.
Loan Losses and Non-Performing Assets
Loans are generally placed on non-accrual status when principal or interest
becomes 90 days or more past due. Those loans past due 90 days or more and that
are still accruing are either well secured or are in the process of collection.
Loans remain on non-accrual status until principal and interest payments are
current or are charged off.
The following table sets forth certain information with respect to the loan loss
experience for the year to date September 30, 1997 and 1996.
Year To Date
------------
ALLOWANCE FOR LOAN LOSSES 9/30/97 9/30/96
- -------------------------------------------------------------------------------
(In thousands)
Balance at beginning of period ...................... $ 5,617 6,484
Provision for loan losses ........................... 1,000 600
Charge offs ......................................... 0 (1,996)
Recoveries
Commercial ........................................ 251 927
Installment ....................................... 4 1
----------------------
Total ............................................... $ 6,872 6,016
======================
9
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
Nine months ended September 30, 1997 compared with nine months ended
September 30, 1996 (continued)
The following table sets forth the aggregate amount of domestic non-accrual and
past due loans which are 90 days or more past due as to principal or interest
payments on the date indicated.
As of
-----
NON-ACCRUAL & PAST DUE LOANS 9/30/97 9/30/96
- -------------------------------------------------------------------------------
(In thousands)
Non-accrual loans .................................... $ 1,673 3,677
Loans past due more than 90 days
& still accruing ................................. 655 135
Restructured loans ................................... 0 0
----------------------
Total ........................................ $ 2,328 3,812
======================
Non-accrual loans as a % of reserve .................. 24.3% 61.1%
Non-accrual loans as a % of total
avg loans ........................................ .5 1.3
Interest income that would have
been earned on nonaccrual loans ................... $ 89 87
Interest income that would have been earned on nonaccrual (impaired) loans is
considered insignificant.
Liquidity
Liquidity measures the Bank's ability to satisfy current and future obligations
and commitments as they become due. Maintaining an adequate liquidity level
through proper asset liability management insures that these needs will be met
at a reasonable cost. Funds to meet liquidity needs are raised through the
liquidation or maturity of an asset or through increased deposits or borrowing.
At September 30, 1997, average cash and short term investments totaled $53.7
million and accounted for 4.6% of the Bank's total average assets, as compared
with $49.2 million or 4.8% as of September 30, 1996. Scheduled loan payments and
payments of principal and interest from the investment portfolio provide
additional liquidity. Sales of securities as of September 30, 1997, were $10.2
million, with $60.9 million for the same period in 1996. $112 million was
received for the first, second and third quarters of 1997 from maturities and
principal pay downs from the investment portfolio, net of amortization, with
$113.3 million recorded during the same period in 1996. In 1997, purchases of
investments were $161.3 million, with $254.5 million in 1996.
10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
On the liability side, the primary source of funds available to meet the
liquidity needs is the Bank's core deposit base. The average balance of deposits
was $850 million for the nine months ended September 30, 1997, with $772.2
million for the same period last year. The Bank continues to retain a
substantial proportion of its average total deposits in the form of non-interest
bearing funds, which were 26.3% and 26.4% of total deposits in 1997 and 1996,
respectively.
Bancorp's cash needs consist primarily of dividends, which were $1,934,162,
$1,727,513 and $1,736,079 in the third, second and first quarters of 1997,
respectively. For same periods in 1996, $1,744,535, $1,495,315 and $1,494,697
were paid.
Capital
The primary source of capital growth is through retention of earnings. Undivided
profits increased to $79.1 million at September 30,1997 as compared to $72
million for the prior year. Bancorp's Board of Directors declared and paid a
dividend of $.35 per share for the first and second quarters of 1997, with an
increase to $.40 for the third quarter. This was an increase of almost 17% above
the $.30 dividend for the first and second quarter of 1996, with a 14% increase
for the third quarter dividend of $.35.
The capital base of a bank is a significant measure of the strength of a
financial institution. The Bank has seen a steady capital growth over the past
several years, with our risk based ratios, as shown below, in excess of the
required "Well Capitalized" level of 8%. The Bank was also in excess of the
required leverage ratio of 4%, with 8.01% for the third quarter of 1997, and
8.98% for the same period in 1996.
There was an overall increase of $4.2 million in capital from September 30, 1996
to September 30, 1997. Increases of $3.8 million are attributable to the change
in market value of the available for sale securities (net of tax effect), with
increases of $7.1 million generated by retained earnings after dividends were
paid, which were offset with a decrease of $6.7 million due to Treasury stock
purchases.
11
<PAGE>
Required 9/30/97 9/30/96
Tier I Capital Ratio.................. 4.00% 17.20% 19.56%
Total Capital Ratio................... 8.00 18.44 20.81
Leverage Ratio........................ 4.00 8.01 8.98
PART II
Item 6 - Exhibits and Reports on Form 8 - K
(a) Exhibits: Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8 - K: None
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MERCHANTS NEW YORK BANCORP, INC.
Registrant
Date: November 12, 1997 /s/ James G. Lawrence
-----------------------------------
James G. Lawrence
President & Chief Executive Officer
Date: November 12, 1997 /s/ Nancy J. Ostermann
-----------------------------------
Nancy J. Ostermann
Vice President and Comptroller
13
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule is a compilation of information appearing in the financial
statements that are included in the Quarterly Report on Form 10-Q for Merchants
New York Bancorp for the quarter ended September 30, 1997. It is qualified in
its entirety by reference to those financial statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> SEP-30-1997 DEC-31-1996
<CASH> 49,100,477 57,488,091
<INT-BEARING-DEPOSITS> 607,000 351,968
<FED-FUNDS-SOLD> 11,000,000 26,000,000
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 568,149,298 561,600,523
<INVESTMENTS-CARRYING> 193,200,434 166,908,260
<INVESTMENTS-MARKET> 198,060,667 169,340,000
<LOANS> 376,068,138 297,080,725
<ALLOWANCE> 6,872,295 5,616,971
<TOTAL-ASSETS> 1,279,180,974 1,137,798,701
<DEPOSITS> 841,677,732 875,693,410
<SHORT-TERM> 248,435,504 127,199,039
<LIABILITIES-OTHER> 31,955,486 31,370,620
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 4,995 4,988
<OTHER-SE> 105,733,861 103,530,644
<TOTAL-LIABILITIES-AND-EQUITY> 1,227,807,578 1,137,798,701
<INTEREST-LOAN> 21,279,227 25,300,755
<INTEREST-INVEST> 40,195,759 47,473,933
<INTEREST-OTHER> 206,444 320,297
<INTEREST-TOTAL> 61,681,430 73,094,985
<INTEREST-DEPOSIT> 21,781,301 26,438,521
<INTEREST-EXPENSE> 29,581,991 33,455,196
<INTEREST-INCOME-NET> 32,099,439 39,639,789
<LOAN-LOSSES> 1,000,000 2,580,000
<SECURITIES-GAINS> 21,901 372,396
<EXPENSE-OTHER> 16,760,164 22,264,647
<INCOME-PRETAX> 18,203,187 20,081,295
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 11,620,076 12,670,771
<EPS-PRIMARY> 2.33 2.52
<EPS-DILUTED> 2.33 2.52
<YIELD-ACTUAL> 4.22 4.41
<LOANS-NON> 1,673,000 1,109,000
<LOANS-PAST> 655,000 687,000
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 5,617,000 6,484,000
<CHARGE-OFFS> 0 4,405,000
<RECOVERIES> 255,000 958,000
<ALLOWANCE-CLOSE> 6,872,000 5,617,000
<ALLOWANCE-DOMESTIC> 857,000 579,000
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 6,015,000 5,038,000
</TABLE>
